A breakout to the upside opens up the possibility of 7000 in the S&P 500, something I expect to see somewhat soon.
S&P 500
- The S&P 500 dipped to kick off the trading session on Thursday but has shown a bit of resiliency back into the market as the S&P 500 is looking forward to the non-farm payroll.
- It does make a certain amount of sense that people were out there taking some profit or at least just closing positions.
The volatility at 8:30 New York time on Friday will, of course, be something to be concerned about, but I think ultimately the longer-term trend continues. After all, Wall Street is pushing the Federal Reserve to cut a couple of times in 2026, and if they do in fact do that, generally speaking, that makes Wall Street happy.
Top Regulated Brokers
The 6800 level below is the floor in the market right now, right along with the 50-day EMA. As long as we can stay above there, I think we're in pretty good shape.
Market Momentum and Strategy
A breakout to the upside opens up the possibility of 7000, something that I expect to see sooner rather than later. It does make a little bit of sense, though, that we are struggling to find momentum right now because of the week we are in. We are in the 1st week of January, typically a very choppy and volatile time, and with that, I think a lot of people are waiting to see this 1st data point come and go before they put a lot of money in.
Regardless, buying on the dips is a tried and true strategy in the S&P 500. I don't think that changes anytime soon, and I certainly wouldn't short this market. If you don't want to buy it, that's 1 thing, but shorting it I think would be extraordinarily dangerous. Ultimately, I like the S&P 500. I think it goes higher; we just might have a little bit of work to do to find the momentum.
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